SALES MEETING AND CONTESTS
Meeting is the session of sharing ideas, notion, facts and experiences from one to another colleague.
Sales "eetings at ho"e
&!
Tra)elling sales "eetings
SALES CONTESTS - A special selling campaign o!ering incentives in the form of pri"es or a#ards be$ond the compensation plan
ACMEE: It is a tool for planning sales meeting, based on Aim, Contents, Methods, Execution, and Evaluation.
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A-C-M-E-E approach: A- Aims
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It is is an imp impor orta tant nt too tooll to mot motiv ivat ate e sale sale forc force e b$ comparing their performance.
O/0ECTI1ES OF SALES CONTESTS I.
o obt obtain ain ne# ne# cus usto tome mers rs..
C- Contents - of a meeting mean to plan the agenda of meeting
II. II.
o sec secur ure e lar larger ger orde orders rs per per sal sales es call. call.
M- Method
III. III.
o pus push hs slo lo# # mov movin ing g iite tems ms,, h high igh-m -mar argi gin n goods, or ne# products.
I%. I%.
o ove overc rcom ome e a seas season onal al sales sales slum slump. p.
%.
o sel selll a mor more e pro& pro&ta table ble mix mix of of prod produc ucts ts..
E- Execution E- Evaluation
%I. %I.
Sales Meeting : Sales meeting is the session of sharing ideas, notions, facts, and %II. experience from one to another colleague to %II. improve performance of sales force. %III %III.. I(.
TYPES OF SALES MEETINGS
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! Nation National al sales sales "eeti "eeting ngs s
o impr improv ove e the the perfo perform rmanc ance e of dis distr tribu ibuto tors rs'' sales personnel. o prom promot ote e seas season onal al mer merch chan andi dise se.. o obta obtain in mor more e prod produc ucts ts dis displ pla$ a$s s b$ dea dealer lers. s. o get reorders. o pro promo mote te sp spec ecia iall d dea eals ls to dist distri ribu buto tors rs,, dealers, or both.
#! $egion $egional al sales sales "eet "eeting ings s %! National National an& an& regional regional sales sales "eetin "eetings: gs: e'ec(ti)e resistance
Contest pri2es:
*! Local Local sale sales s "eeti "eetings ngs
M- erchandise
+! Tra)ellin ra)elling g an& re"ote-cont re"ote-control rol sales sales "eetings
C - ash
- ravel S - pecial honours or privileges
a!
Close&-circ(it Close&-circ(it tele)ision , he program is live at one meeting site and is telecast to others
A3ar&ing the pri2es 4or sales contests Contest D(ration
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Sales "eetings . telephone •
Contest Pro"otion
the marginal pro&t generated exceeds the cost of servicing them.
E)al(ation o4 contests
$EASONS FO$ ESTA/LIS5ING TE$$ITO$IES
P$OCED7$E FO$ SETTING 7P SALES TE$$ITO$IES
1. To obtain thorough coverage of the market 5/6 Select a geographic control unit, 2. To Establish Salesperson’s Job and Responsibilities
516 Mae an account anal$sis
3. To evaluate sales performance
546 7evelop a salesperson #orload anal$sis
. To !mprove "ustomer Relations
586 Combine geographic control units in to territories
#. To Reduce Sales E$penses 596 Assign sales personnel to territories. %. To improve control of the sales forces ). To co&ordinate selling 'ith other marketing( functions
/ASES FO$ TE$$ITO$Y DE1ELOPMENT: *- eograph$ +- otential and servicing reuirements:
+olitical units 5state, district, or cit$6 are presentl$ used uite often as geographic control units a. Co(nties : In the nited States and .;., the count$ is the most #idel$ used geographical control unit.
- orload
b. 8ip co&e areas: It is also used in SA. $pical
APP$OAC5ES OF DESIGNING TE$$ITO$IES
c. Cities: hen a compan$'s sales potential is located entirel$ or almost entirel$, in urbani"ed areas, the cit$ is used as the control unit.
/. /(il&ing (p approach & of designing territories involves combining enough pieces of a compan$'s overall maret to create units presenting su0cient sales challenges.
1. /rea6&o3n approach 2 It starts #ith the overall sales forecast for the entire compan$, #hich is in turn derived from a pro3ection of the total maret potential and an estimate of the compan$'s liel$ share of it.
d. Tra&ing areas: he trading area is perhaps the most logical control unit, since it is based mainl$ on the natural =o# of goods and services rather thin on political or economic boundaries. e. States: A state ma$ be an adeuate control unit if used b$ a compan$ #ith a small sales force that is covering the maret selectivel$ rather than intensivel$.
Territor. Shape •
4. Incre"ental approach - is conceptuall$ the most appealing. ith this approach, additional territories are created as long as
9e&ge - is appropriate for territories containing both urban and non-urban areas. It radiates out from densel$ populated urban centre.
b. o furnish goals and incentives for the sales force •
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Circle - is appropriate #hen accounts and prospects are evenl$ distributed throughout the area. Circular territor$ involves starting at the o0ce and moving in a circle of stops until the salesperson ends up bac at the o0ce. Clo)erlea4 - is desirable #hen accounts are located randoml$ through a territor$. Careful planning of call schedules results in each cloverleaf being a #ee's #or, maing it possible for the salesperson to be home #eeends. 5opscotch - the salesperson starts at the farthest point from the o0ce and maes calls on the #a$ bac to the o0ce. he salesperson #ould t$picall$ go non-stop to the farthest point in one direction and on the #a$ bac stops at man$ places.
Territory Management problems & Remedies
c. o control salespeople's activities d. o evaluate the productivit$ of sales people e. o control selling expenses f.
o mae e!ective compensation plan
g. o evaluate sales contests results
TYPES OF ;7OTAS Sales volume quota - set for an individual sales person, geographical areas, product lines or distributive outlet or for onl$ one or more of these in combination.
Financial or budget quotas – are determined to attain desired net pro&t as #ell as to control the sales expenses incurred.
Expense quotas: In order to mae the sales force conscious of the need to eep selling costs #ithin reasonable limits, some companies set uota for expenses lined to di!erent levels of sales attained b$ their sales force.
et pro!t quotas: are particularl$ useful in multiproduct companies #here di!erent products contribute var$ing level of pro&ts.
"ctivity quotas: *ood performance in competitive marets reuires the sales force to perform the sales as #ell as maret development related activities. Sales (ota - is a uantitative goal assigned to a sales unit for a speci&c period of time.
P7$POSE OF T5E SALES ;7OTA a. o provide standards for evaluating performance
#ombination $uotas: 7epending upon the nature of product and maret, selling tass reuired to be performed as #ell as selling challenges facing the compan$, some companies &nd it useful to set uotas in
combination of the t#o or three t$pes discussed above.
Sales 1ol("e ;(ota : It is the number of products to be sold b$ an individual sales person.
Acti)it. ;(ota: It is the various activities P$OCED7$E FO$ SETTING SALES 1OL7ME assigned to sales force to be performed ;7OTA regarding sales. /. >uotas based on sales potential 1. >uotas based on past sales alone
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4. >uotas based on past sales alone 8. >uotas based on total maret estimates 9. >uotas related onl$ to compensation plan ?. Salespersons set their o#n uota
C5A$ACTE$ISTICS OF A GOOD ;7OTA SYSTEM %i Realistic attainability: If a uota is to spur the sales force to maximum e!ort, the goal must be realisticall$ attainable. If it is too far out of reach, the salespeople #ill lose their incentives. %ii 'b(ective "ccuracy: @egardless of #hat t$pe of uota management uses, it should be related to potentials. Executive 3udgement is also reuired, but it should not be the sole factor in the decision. %iii Ease o) understanding and administering: A uota must be eas$ for both management and the sales force to understand. Also, the s$stem should be economical to administer. %iv Flexibility: +articularl$, if the uota period is as long as a $ear, management ma$ have to mae ad3ustments because of changes in maret conditions. %v Fairness: A good uota s$stem is perceived as fair to the people involved.
Sales ;(ota: It is uantitative goal assigned to a sales person.
S7PE$1ISION AND E1AL7ATION OF SALESFO$CE Evaluation s$stem should do three essential things for the sale manager and sales-people: +rovide feedbac to each salesperson on individual 3ob performance. Belp salespeople modif$ or change their behavior to#ard e!ective #or habits. +rovide information to sales managers on #hich to base decisions on promotion, transfer and salespeople.
TIME 5O$I8ON FO$ E1AL7ATION Sales evaluation normall$ is of three t$pes:
! Short r(n e)al(ation- In this, performance is evaluated over one $ear and the focus is on the achievement of targets in terms of sales. #! Inter"e&iate r(n e)al(ation - he performance is 3udged over 1 to 8 $ears time period and focus is on evaluation in terms of creating and identif$ing ne# opportunities #hile adapting to competitive and environmental threats. %! Long r(n e)al(ation- his is on long-term basis and focus on evaluation in terms of surviving in an uncertain and increasingl$ competitive #orld.
STANDA$DS OF PE$FO$MANCE
Per4or"ance stan&ar&s - are designed to measure the performance of activities that the compan$ considers most important.
%i Sales $uotas - uota is a uantitative ob3ective expressed in absolute terms and assigned to a speci&c mareting unit. %ii Selling expense ratio - Sales manager uses this standard to control the relation of selling expenses to sales volume.
%iii Territorial net pro!t or gross margin ratio - arget ratios of net pro&t or gross margin to sales for each territor$ focus sales personnel's attention on the needs for selling a balanced line and for considering relative pro&tabilit$.
%x "verage order sie - Average order si"e standards control the freuenc$ of calls on di!erent accounts. he usual practice is to set di!erent standards for di!erent si"es and classes of customers. sing average order si"e standards along #ith average cost per call standards, management controls the salesperson's allocation of e!ort among di!erent accounts and increases order si"e obtained. %xi on-selling activities - Some companies establish uantitative performances standards for such non-selling activities as obtaining dealer displa$s and cooperative advertising contracts, training distributor's personnel, and good#ill calls on distributor's customers. henever, non-selling activities are critical features of sales 3ob, appropriate standards should be set.
%iv Territorial mar*et s+are - his standard ;(alitati)e per4or"ance criteria controls maret share on a territor$ b$ territor$ basis. Management sets target >ualitative criteria are used for appraising maret share percentages for each territor$. performance characteristics that a!ect sales results, especiall$ over the long run, but #hose %v Sales coverage e,ectiveness index degree of excellence can be evaluated onl$ his standard controls the thoroughness #ith sub3ectivel$. #hich a sales person #ors in the assigned territor$. he index consists of the ratio of the number of customers to the total prospects in .ob Factors a territor$. +roduct no#ledge %vi #all )requency ratio - A call freuenc$ ratio is calculated b$ dividing the number of sales calls on a particular class of customers b$ the number of customers in that class. %vii #alls per day - In consumer product &elds, #here sales personnel contact large numbers of customers, it is desirable to set a standard for the number of calls per da$. %viii 'rder call ratio - his ratio measures the e!ectiveness of sales personnel in securing orders. Sometimes called a batting averageD, it is calculated b$ dividing the number of orders secured b$ the number of calls made. %ix "verage cost per call - o emphasi"e the importance of maing pro&table calls, a target for average cost per call is set.
Customers' no#ledge Competitor's no#ledge Bandling sales presentations Customer satisfaction ime management
/ersonal Factors +unctualit$ *eneral Attitude 7ress and Appearance Co-operation Adaptabilit$ @eliabilit$
Communication sills 7ecision-maing abilit$
?. o report changes in local business and economic conditions.
Initiative
). o eep the mailing list updated for promotional and catalogue materials.
MEAS7$ING ACT7AL PE$FO$MANCE
Types o) sales )orce reports
Field sales reports
@eports from sales personnel fall into six principle groups.
he fundamental purpose of &eld sales reports is to provide control information. he$ provide a basis for discussion #ith sales personnel. he$ also indicate the matters on #hich sales personnel need assistance.
/urposes o) !eld sales reports he general purpose of all &eld sales reports is to provide information for measuring performance man$ reports, ho#ever, provide additional information. Consider the follo#ing list of purposes served b$ &eld sales reports:
! Progress or call report #! E'pense report %! Sales 3or6 plan *! Ne3-(siness or potential ne3-(siness report +! $eport o4 co"plaint an&
COMPA$ING ACT7AL PE$FO$MANCES 9IT5 STANDA$DS
/. o provide data for evaluating performancefor example, details concerning accounts and he most di0cult step in sales force control is prospects called upon, number of calls made, the evaluation step the comparing of actual orders obtained, da$s #ored, miles travelled, performances #ith standards. his is more than selling expenses, displa$s erected, a mechanical comparison this step is di0cult cooperative advertising arrangements made, because evaluation reuires 3udgement. he training of distributor's personnel, missionar$ same standards cannot be applied to all sales #or, and calls made #ith distributors sales personnel-there are di!erences in individual personnel. territories, their sales potentials, the impact of competition and the personalities of sales 1. o help the sales person plan the #or- for personnel and their customers. It is possible to example, planning itineraries, sales tae territorial di!erences into account b$ approaches to use #ith speci&c accounts and setting individual performance standards for prospects. each territor$, but it is not possible to ad3ust 4. o record customers' suggestions and full$ for di!erences in the personalities of the complaints and their reactions to ne# salesperson and the clientele. Furthermore, products, service policies, price changes, complications often develop in relating advertising campaigns, and so forth. individual performances to standards, for example, #hen t#o or more sales persons #or 8. o gather information on competitors' on the same account or #hen an account deals activities- for example, ne# products, maret both #ith the salesperson and the home o0ce. tests, changes in promotion, and changes in pricing and credit polic$. 9. o provide information reuested b$ mareting research- for example, data on dealers' sales and inventories of compan$ and competitive products.
T5E DYNAMIC P5ASE OF E1AL7ATION /. Ad3ust performance to the standards, thus increasing the degree of attainment of ob3ectives
1. @evise the polic$ andGor plan, or the strategies used for their implementation to better for the achievement of ob3ects 4. Ho#er or raise the ob3ectives or the standards andGcriteria used in measuring degree of attainment to mae them more realistic.
Similarl$ actions to be taen depend on the performance in terms of uantitative as #ell as uantitative evaluation. Four such situations, as discussed belo#, ma$ be anticipated: 1. )ood performance in both *ualitative and *uantitative evaluation- he appropriate response #ould be praise, monetar$ re#ards and ma$ be promotion.
2. )ood performance in *uantitative but poor in *ualitative evaluation- he good uantitative result suggest performance in terms of salesGpro&ts and in front of customers is good. Bo#ever, poor performance on ualitative criteria #arrants advice and training on ualitative aspects. 3. +oor performance in *uantitative but good in *ualitative evaluation- *ood ualitative input is failing to be re=ected in uantitative success. he speci&c causes need to be identi&ed and training and guidance should be provided. . +oor performance in both *uantitative and *ualitative evaluation- Critical and thorough discussion is reuired on problem areas. raining ma$ be provided to improve the performance. In some situations, punishment including dismissal is reuired.
